An update prior to market July 10, 2024, a Wednesday: Due to a dearth of directional cues from global counterparts, benchmark equity indices, the BSE Sensex and the Nifty, are anticipated to open Wednesday’s trading session quietly.
GIFT Nifty futures quoted at 24,478 levels at 7:00 AM.
worldwide attitude
Tuesday’s US market closed with mixed results due to US Fed Chairman Jerome Powell’s testimony. Powell stated that although the economy was not overheated, the labour market appeared robust and had returned to pre-Covid levels.
Powell made it apparent that the Fed will continue to make decisions based on evidence when it comes to interest rate cuts.
Both the NASDAQ and the S&P 500 ended the day at record highs, up 0.1% each. On the other hand, the Dow Jones fell 0.1%.
The yield on US 10-year bonds increased slightly to 4.30 percent. In the commodities market, Brent Crude Oil futures fell below $85 per barrel, while Gold futures remained steady at $2,370 per ounce.
Asia-Pacific equity markets began the morning’s trading on a cautious note. The benchmark Australian stock indexes each saw a decline of up to 0.5%. Taiwan, Kospi, and the Nikkei in Japan were all flat.
FII and DII trading operations
For the seventh day in a row, net purchases in the cash segment were foreign institutional investors (FIIs). On July 09, they netted Rs 314.46 crore in stock purchases. Domestic institutional investors (DIIs) also became net purchasers on Tuesday, purchasing shares worth a total of Rs 1,416.46 crore.
FIIs net purchased 8,932 index futures contracts yesterday for a consideration of Rs 498.31 crore in the derivatives market. FIIs net sold 2,725 Bank Nifty contracts and net purchased 11,721 Nifty futures contracts.
For the sixth trading day in a row, the FIIs index long-short ratio was above 5:1, indicating that for every bet on the short side of index futures, foreign investors had more than five long bets. Long positions in the FIIs net index were 83.69 percent, while short positions were 16.31%.
However, the index long-short ratio for DIIs and individual investors stayed about 0.5:1, or two index short bets for every long trade.
Trading plan for July 10th, Wednesday: Is it the right time for you to purchase or sell in the Nifty, Bank Nifty? What market analysts have to say is as follows:
Angel One’s Rajesh Bhosale is an equity technical analyst.
The market held its positive tone, but there were few intraday trading opportunities during the session. Small-bodied candles on the daily chart indicate that prices are still rising.
Long-bodied candles should ideally signal advantageous trading circumstances, but the sluggish formations that are now in place are trying the patience of trend followers alike. The market seems overbought by a number of metrics, even though the general mood is still optimistic and there are no indications of deterioration.
As such, we discourage taking aggressive long positions. The golden ratio retracement of the panic decline witnessed following the Election Day results is a key level to keep an eye on: 24,600–24,650. On the down side, 24,330 and 24,160 provide quick support.
Ashwin Ramani works for SAMCO Securities as a technical and derivatives analyst.
Tuesday’s steady increase in the Index was caused by put writers (Bulls) entering at the 24,200 and 24,300 Nifty strike and call writers (Bears) leaving. In Nifty, there was strong put writing at the 24,400 Strike.
After trading horizontally for the previous two trading sessions, the Nifty closed higher on the daily chart. You might get indications about the future direction of Nifty from the option activity near the 24,500 Strike.
Throughout the previous three trading sessions, the Bank Nifty has been consolidating inside a range. At the 52,600 Strike in Bank Nifty, there was a significant call writing activity. At the 52,600 Strike, the put writers (72K contracts) are trailed by the call writers (1.99 lakh contracts), and the option activity during this strike will offer hints regarding Bank Nifty’s future course.
Om Mehra, SAMCO Securities Technical Analyst
At roughly 24,200, the 10-day moving average provides strong support for the Nifty. With a strong primary trend, the market is trading within a broad rising channel with higher highs and higher lows. Despite a 23.6% retracement, the index quickly bounced back and increased. In the next session, it is anticipated that the Nifty will test the range of 24,580–24,640.
Currently, the Bank Nifty is consolidating inside a wide range, with resistance close to 53,370 and support at 52,100. The future direction will probably be determined by a breakout from this range. at the interim, a buy-on-dips approach can be used at the upcoming meetings.
Asit C. Mehta Investment Intermediates’ AVP of Technical and Derivatives Research, Hrishikesh Yedve
From a technical perspective, the Nifty is showing a strong rise as it forms a higher top higher bottom structure. Near 24,168 is where the short-term swing support is located. If the index remains above 24,168, Nifty may test levels between 24,500 and 24,600. In the short run, a “buy on dips” approach ought to be used.
The Bank Nifty has created a bullish engulfing candle on a daily basis close to the bottom of the short-term consolidation range. Therefore, in the near run, 52,000–52,200 will provide the Bank Nifty with good support. The Bank Nifty may test the 53,000–53,200 levels as long as it is above 52,000 levels.
Senior Technical Analyst at LKP Securities, Rupak De
Positive sentiment is expected to persist as long as the Nifty remains above 24,300, the level at which substantial put writing has taken place. The 24,500–24,600 range could serve as an instant resistance zone on the higher end. Generally, until the index drops below 24,300, the sentiment may continue to favour the bulls in the foreseeable future.
Senior Technical and Derivative Analyst at LKP Securities, Kunal Shah
The Bank Nifty index is still in a buy-on-dip phase. A break over 52,700 will allow for additional upside potential towards 53,000, the call side’s peak open interest level. The index may drop further lower, perhaps to the 51,700–51,500 range, if it is unable to maintain the 52,100–52,000 support level.
fresh ads
On Wednesday, Emcure Pharma and Bansal Wire will have their market debuts. Emcure Pharma’s listing gain is expected to be 30% based on the grey market premium trend, whilst Bansal Wire’s debut premium might be 27%.
stocks prohibited by F&O
Aditya Birla Fashion Retail, Balrampur Chini, Bandhan Bank, Chambal Fertiliser, GNFC, Indian Energy Exchange, India Cements, Indus Tower, and Piramal Enterprises are the nine stocks that are prohibited from trading futures and options (F&O) on Wednesday.